One of three joint tenants sells her interest during her lifetime to an outside buyer. What is the effect on that interest?
Correct Answer
C) The transfer creates a tenancy in common for the interest conveyed
Although a joint tenant cannot devise the interest by will, the joint tenant can transfer it during life, which creates a tenancy in common for the interest transferred.
Why This Is the Correct Answer
Option C is correct because a joint tenant can transfer his or her interest during life, which creates a tenancy in common for the interest transferred. The buyer does not join the joint tenancy because the unities required for joint tenancy are broken for that share.
Why the Other Options Are Wrong
Option A: The sale is void, because joint tenants cannot transfer during life
Option A says the sale is void because joint tenants cannot transfer during life. A joint tenant can transfer the interest during life; what a joint tenant cannot do is devise it by will.
Option B: The buyer becomes a joint tenant with full survivorship rights
Option B says the buyer becomes a joint tenant with full survivorship rights. The transfer breaks the joint tenancy as to the conveyed share, so the buyer holds it as a tenant in common without survivorship rights.
Option D: The interest reverts to the remaining joint tenants
Option D says the interest reverts to the remaining joint tenants. Survivorship operates at death, not on a lifetime sale; here the interest passes to the buyer.
Sell it, sever it
When a joint tenant sells a share during life, that share is severed and the buyer holds it as a tenant in common.
How to use: Use this phrase when a question describes a joint tenant conveying an interest before death.
Exam Tip
Distinguish transfer during life, which is allowed and severs the share, from transfer by will, which is defeated by survivorship.
Common Mistakes to Avoid
- -Believing joint tenants cannot sell their interests while alive
- -Assuming the buyer inherits survivorship rights
- -Confusing a lifetime sale with survivorship at death
Concept Deep Dive
Analysis
This question tests what happens when a joint tenant transfers an interest during life. A joint tenant cannot pass the interest by will, but can convey it while alive. The conveyance breaks the joint tenancy as to that share, and the buyer holds it as a tenant in common.
Background Knowledge
Joint tenancy is concurrent ownership with the right of survivorship, so when one joint tenant dies the share passes to the surviving joint tenants. A lifetime conveyance by one joint tenant severs the joint tenancy as to that share. The remaining joint tenants generally continue as joint tenants among themselves for their shares.
Real-World Application
Three siblings own a rental house as joint tenants, and one sells her share to an investor. When the appraiser reviews title for a later refinance, he notes the investor holds a one-third interest as a tenant in common with the two siblings.
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